COM 0193.096 2006-2008 - Laserfiche WebLink

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i Executive Summary ' Economic analysis of current public policies on marijuana reveals that Hawaii state and county governments could reap up to $33 million annually in new revenues and cost savings if tax and regulatory policies were to replace law enforcement to control marijuana distribution. Furthermore, research indicates that enforcement expenditures of ~ up to $10 million each year statewide have failed to reduce the amount of mazijuana available in Hawaii. ~ This report focuses on the economic effects of two alternative policies: Decriminalization of marijuana is a policy that reduces the punishment for its possession to a civil fine rather than criminal penalties or jail time. Trafficking, selling, and distributing to minors, remain subject to standard criminal punishment. Leealization is a policy that would eliminate criminal and civil penalties for both possession and sale of marijuana and replace them with regulation, which would include restrictions on mazijuana use similar to those applicable to alcohol and tobacco. The regulation model uses taxes, minimum age requirements, and licensing to control distribution. Currently, thirteen states have decriminalized marijuana possession. Spain, Portugal, Luxembourg, Belgium, and Austria have decriminalized marijuana possession; in addition, there are seven other countries either considering decriminalization or having a de facto policy that in essence, decriminalizes or legalizes marijuana (e.g. the Netherlands). The primazy cost of the criminalization ofmarijuana is law enforcement. In Hawaii, possession of less than one ounce of marijuana is a petty misdemeanor. Approximately 65 percent of the cases are dismissed, not prosecuted, or stricken in any given year. First ~ offenses generally receive probation or a deferred acceptance of a guilty plea. Given the current usage levels, the low risk of arrest, and further risk of punishment, the current criminalization policy is not deterring marijuana use. r The report concludes: a • State and county law enforcement agencies spend $4.1 million per year to enforce marijuana possession laws; an additional $2.1 million is spent by the courts. ~ Enforcement of marijuana distribution laws costs approximately $3 million. The total costs of enforcing all marijuana laws in Hawaii are approximately $9 to 10 million per year. a Between 1994 and 2003, the price of one ounce of high quality marijuana dropped by 12 percent. The price decline reveals that law enforcement efforts to restrict • supply have not been effective.